1. Field of the Invention
The present invention relates generally to teaching methods, and more specifically to a method for teaching economics or business practices involving a xe2x80x9cvirtual enterprise,, simulation (pictorial and/or live). Persons involved take the roles of various xe2x80x9cstakeholders,xe2x80x9d i.e., corporate managers, clients, shareholders, contractors, etc., during training sessions. The records of transactions taking place during the course of a training session may be kept on specially formatted sheets, on an electronic version thereof, or by means of a computer program, to provide essentially instantaneous information relating to the progress of the simulated business during a teaching session. The present invention may be extended to include a method or means of performing business and other transactions as well.
2. Description of the Related Art
Economics, management and accounting are generally considered to be relatively complex fields of science, with a full understanding generally being considered to be achieved only by means of an advanced curriculum in a college or university, and perhaps with further practical experience. The methods for teaching such subjects are generally relegated to the classroom and by conventional textbooks and the like. Such methods conventionally used, generally fail to show clearly the economic effects of each transaction on those involved in a business or economic relationship.
Yet, it will be seen that every business transaction affects the economic status of each xe2x80x9cstakeholderxe2x80x9d in an enterprise of any sort; conventional teaching and accounting methods do not show these relationships, and result in a relatively complex picture of the enterprise, its balance sheet, and its profit and loss statement. Traditional financial or economic games (e.g., Monopoly, (trademark)) do not provide a complete picture of the various effects of business or economic transactions in the real world. Such games are competitive in themselves and involve winning and losing players, rather than being directed to the teaching of business and/or economic theory and practice, as accomplished by the present inventive method.
Traditional teaching methods of the closely interrelated disciplines of economics, management, and accounting, continue to be relatively abstract and are not easily and fully understood by students in those fields. The use of computer technology for the purpose of more rapid comprehension of these theories and practices, has not been fully developed at present. As a result of the generally prevailing segmentation of knowledge in these fields, a person may spend years of study unnecessarily. Further, the present state of the art in the domain of economics and social sciences may be such that, unless it changes, will never provide a common knowledge base required by people everywhere to upgrade their life standards. Present systems result in people being unnecessarily dependent upon government and specialized professional assistance in these fields.
Accordingly, a need will be seen for a method for teaching and simulating economic and/or business processes, which places responsible parties in realistic roles during the training session. A table of transactions and a series of transaction cards are provided, each describing a business or economic scenario of some sort. The results of each transaction are manually recorded on transaction sheets, or may alternatively be recorded electronically or by means of a computer program developed for the present teaching system. In the present teaching system, every transaction affects the economic status of each of the xe2x80x9cstakeholdersxe2x80x9d involved, and this is instantaneously shown in all pertinent accounts and financial statements of the enterprise.
The present non-competitive game of enterprise economics is a teaching method that uses both common human intelligence and computer technology to promote social and economic well being far beyond any historic precedence. This method may also demystify the concept of science itself, in that it provides an almost instant understanding of economic phenomena and related organizational and sociological imperatives to work, earn, produce, consume, and invest in the future.
This teaching method may well reduce years of study, to only days of study generally needed to fully understand the economic process at all levels of society, i.e., family, enterprise, community, state, and beyond. The present method and system thus fill a historic gap in human science to provide improvements in well being for all mankind, and thus contribute significantly to a generalized and globalized human progress and thereby strengthen the prospects of lasting peace on our planet.
The present method and system is not applicable only to the teaching of economics and related fields, but may also be applied to business and economic transactions themselves, as will be seen in a review of the following disclosure. Use of the present system in business and other transactions results in a simplification of the processes involved and a clearer understanding of all of the elements of a given transaction as well.
A discussion of the related art of which the present inventor is aware, and its differences and distinctions from the present invention, is provided below.
U.S. Pat. No. 4,150,827 issued on Apr. 24, 1979 to David A. J. Barnett, titled xe2x80x9cEconomic Board Game,xe2x80x9d describes a game in which players are randomly selected and use chance means (dice, etc.) to determine the course of each play. The game is played upon a single playing board, which shows various tables of values for a plurality of business opportunities which are selected depending upon the outcome of the play. Cards are used to indicate the general economic status of a given business during play. The present method differs in that (1) it is not a simple game, but more than that, it is an overall business practice teaching method; (2) each participant in the present teaching system acts in a different role (e.g., materials manager, shareholder, etc.) for a single economic enterprise, rather than each player acting as CEO of a different business; (3) there is no competitive aspect to the present system, but rather a teaching of the flow or interaction of transactions between participants; and (4) a separate sheet or page (hard copy, computer, etc.) is used for each transaction in the present teaching system, rather than using a single game board for the entire session.
U.S. Pat. No. 4,289,313 issued on Sep. 15, 1981 to Robert P. Delamontagne, titled xe2x80x9cManagement Teaching Game Apparatus And Method,xe2x80x9d describes a board game in which two players are required to answer questions during play, and are rewarded with simulated money for correct answers. Advance during play is determined by chance. The game is competitive, with the player collecting the largest sum of simulated money, being the winner. In contrast, the present economics, management and accounting teaching method is played by a team of participants (ideally sixteen to twenty two persons). The present economics and business teaching method is not competitive, with all participants acting or serving in roles as stakeholders in a single corporation or enterprise. While the transaction cards of the present teaching system may be drawn randomly, they are precoded and listed in logical sequence for better understanding of actual business practices. The transactions are specifically spelled out and clearly indicated, with no requirement for additional responses from participants. Each transaction is logged separately in the present teaching system, with participants thus developing a clear concept of the factors involved in each transaction.
U.S. Pat. No. 4,452,457 issued on Jun. 5, 1984 to Sabah Atieh et al., titled xe2x80x9cFinancial Board Game, xe2x80x9d describes a board game simulating the trading of stock in a corporation. While a stock or dividend transaction is a part of the present teaching method, the present method does not rely upon such, but rather is directed primarily to various internal and external transactions in a corporate enterprise, to show the interrelationship between different positions in the enterprise as well as different external factors depending upon the transaction. Accordingly, each transaction is entered separately, rather than using a single game board and playing path thereon, as in the Atieh et al. game. Again, as noted further above, the present method or system is not a simple competition between two players or teams, and no winners or losers are determined by any competitive means, as opposed to the Atieh et al. game and others of the prior art.
U.S. Pat. No. 4,501,425 issued on Feb. 26, 1985 to Daniel D. Alvarado, titled xe2x80x9cBusiness Organization Game,xe2x80x9d describes a game having two playing paths. One path provides for the simulated advance of players up the corporate staff hierarchy, while the other simulates financial gain by players during the course of play. Chance means is used to determine advance along the second playing path. In contrast, all participants in the present economics teaching method retain their positions throughout each session, and do not accrue any simulated wealth during the course of the session. Rather, they engage in various internal (within the corporation) and external (from the corporation to outside vendors, government, etc.) transactions, with the process showing which participants are involved in administrative responsibilities for goods and services (i.e., responsibilities for assets) and which participants experience adjustment in their rights of claim or ownership (i.e., liabilities and equity) over those same goods and services under the responsibility of management functions.
U.S. Pat. No. 5,071,135 issued on Dec. 10, 1991 to Thomas J. Campbell, titled xe2x80x9cBoard Game Apparatus For The Teaching Of Financial Management Principles,xe2x80x9d describes a game somewhat resembling the older game of xe2x80x9cMonopoly,xe2x80x9d wherein players buy and sell properties and collect wealth by means of simulated currency. The Campbell game includes a single game board, with the playing path representing a one year period, divided into quarters. Again, the present teaching system is not a simple competitive game, but rather a means of teaching or showing participants the effects of a series of business transactions in a simulated corporation or other financial or social structure. The present system is not limited to any temporal period, either simulated or actual, and does not determine any winners or losers nor provide participants with any actual or simulated wealth, other than that accrued by the corporation by means of the transactions which occur.
U.S. Pat. No. 5,407,207 issued on Apr. 18, 1995 to Carlton R. Stanford, titled xe2x80x9cBoard Game Simulating Financial Events Of A Lifetime,xe2x80x9d describes a competitive game in which players use chance means to travel about a playing path during the course of the game. Winning and losing players are determined by the amount of simulated wealth they accrue during the course of play. Each pass around the board represents one year of elapsed time. The Stanford game thus more closely resembles the simple game described in the Campbell ""135 U.S. Patent described immediately above, than the present holistically envisioned business and economics teaching method.
U.S. Pat. No. 5,788,234 issued on Aug. 4, 1988 to Artur A. Sioffer, titled xe2x80x9cBusiness Board Game,xe2x80x9d describes a board game in which players attempt to secure a controlling interest in various simulated industrial cartels, in order to control prices to competing players. Simulated stock trading is also a part of the Sioffer game. As in other competitive games of which the present inventor is aware, players of the Sioffer game are competing against one another, with the winning player being the player who accrues the greatest amount of simulated wealth during the course of play. Again, the present teaching method is not such a simplistic game; does not involve travel about a path on a game board; does not involve competition between individuals; and does not determine any winners or losers in a financial sense in the course of a session. Rather, the present teaching method shows the participants the effects of various simulated business or economic transactions, on a simulated corporation in which the participants play various roles.
U.S. Pat. No. 5,826,878 issued on Oct. 27, 1998 to Robert T. Kiyosaki et al., titled xe2x80x9cApparatus And Method Of Playing A Board Game For Teaching Fundamental Aspects of Personal Finance, Investing And Accounting,xe2x80x9d describes a competitive game having first and second tracks which must be followed sequentially. A player may not advance to the second track until a sufficient amount of simulated wealth has been accumulated by play on the first track. Players may gain and lose wealth during the course of play on either of the tracks. The game includes income and cash flow statements and a balance sheet. While the present teaching method also includes such statements, it goes further in providing a permanent monitoring system for showing the affected parties in any transaction, for teaching the effects of various transactions upon the participants in the teaching session. Again, the present teaching system is not competitive, and no game board per se, player position markers, or chance means are provided.
U.S. Pat. No. 5,829,746 issued on Nov. 3, 1998 to John P. Pacella, titled xe2x80x9cInvestment Board Game,xe2x80x9d describes a game of chance in which various opportunities for investment or loss are provided. As in the other games described herein, the Pacella game is competitive in nature, with a winner and loser(s) being determined by the amount of simulated wealth accrued by the end of the game. Pacella does not provide any means of teaching the interactive effects of corporate transactions upon a corporation or upon the personnel of that corporation and those dealing with the corporation, as provided by the present economics teaching method.
British Patent Publication No. 1,432,761 published on Apr. 22, 1976 to Terence B. Shead et al., titled xe2x80x9cGame,xe2x80x9d describes a board game somewhat resembling Monopoly, in that players travel around the playing path of the board and attempt to accrue simulated wealth during the course of the game. The game loosely simulates at least the adult life of one or more persons, with the game ending when one of the simulated persons is declared dead. The simulated wealth of the players is then compared, with the player having the greatest simulated wealth being the winner. No method of teaching financial transactions, or their effect upon stakeholders in a corporation, is provided by Shead et al., as taught by the present disclosure.
Finally, British Patent Publication No. 2,132,907 published on Jul. 18, 1984 to Kenneth R. Maund, titled xe2x80x9cBoard Game Apparatus,xe2x80x9d describes a competitive game simulating the automobile production and sales industry. Chance means are used for advancing playing pieces about the board, unlike the present teaching system. A xe2x80x9cmaximum production targetxe2x80x9d is established, with the winning player being the first player to reach the target, according to the game rules. As noted with the other prior art games described further above, the present teaching method differs in that it is not competitive, and does not seek or establish any financial goals for individual participants.
None of the above inventions and patents, taken either singly or in combination, is seen to describe the instant invention as claimed.
The present invention comprises a method for teaching economics or business transactions by simulating an enterprise as a xe2x80x9cbalance sheet live,xe2x80x9d i.e., a situation where actual participants are gathered in a single physical or virtual location and each is acting as an operational center (buyer, manager, supplier, etc.) and being responsible for specific aspects of the business enterprise. The present method comprises a table of predefined and preprogrammed acts of receiving (debits) and giving (credits) of goods and services symbolized by a series of coded transaction cards. Participants in the exchanges represent officials, employees, contractors, shareholders, government, bankers, and other stakeholders of a corporation. A hypothetical business transaction is selected with its corresponding transaction card which will be exchanged between two participants, with the first receiving the card and being debited for its value, and the second giving the card to the first participant and being credited for its value.
The debits and credits are entered into the monitoring system, which is essentially a summarized balance sheet, and simultaneously into conventional financial reports comprising a balance sheet, profit or income statement, and a cash flow statement. The present system shows at all times how the transactions affect the parties involved, their individual balances, and thus the changing situation of the hypothetical corporation as an entire team of participating stakeholders.
No competition is involved, nor is there any simulated accrual of individual or personal wealth or assets in the present teaching method. Rather, the present method instructs corporate officials and others in the tracking of the effects of various business and economic transactions which typically occur in the financial world, and provides a much easier and more readily visible means of determining the effects of such transactions.
Accordingly, it is a principal object of the invention to provide an improved method for teaching economics which provides various means of tracking simulated financial transactions and showing the effects of those transactions upon the parties involved.
It is another object of the invention to provide an improved method for teaching economics which is particularly applicable to the corporate or business world, for teaching various company, government, and other officials thereof.
It is a further object of the invention to provide an improved method for teaching economics including a series of transaction sheets, a corresponding series of transaction cards, a cash flow statement, a balance sheet, and a transaction sheet for showing the effects of a given transaction between the parties involved.
An additional object of the invention is to provide an improved method for teaching economics in which transaction cards are drawn singly and sequentially, with each of the cards relating to one or more specific transactions, and with the results of each transaction being entered into the various record sheets accordingly.
Still another object of the invention is to provide an improved method for teaching economics which transaction sheets, transaction cards, cash flow statement, balance sheet, and transaction table may be computerized and/or may include electronic entry means therein.
It is an object of the invention to provide improved elements and arrangements thereof in an apparatus for the purposes described which is inexpensive, dependable and fully effective in accomplishing its intended purposes.
These and other objects of the present invention will become apparent upon review of the following specification and drawings.